JACKSON, Miss. (WLBT) – More local leaders are coming out in opposition of Hinds County’s plans to spend millions of dollars in COVID-19 relief dollars on economic development.
Last week, supervisors announced they were planning to spend $10 million in American Rescue Plan Act funding on economic development.
Of that, $6 million would go to creating a new nonprofit group designed to bring new retail development to the county.
Several leaders have questioned the decision, including two county supervisors who say they did not support the plan.
Now, two other local leaders are raising questions, including the chair of the Hinds County Economic Development Authority (HCEDA).
“I think it’s cheaper, more economically feasible if HCEDA is expanded,” he said. “That’s my personal thoughts, without the board having acted in any way.”
At dueling press conferences last week, Supervisors David Archie and Robert Graham called out their fellow board members, saying the county didn’t need to create a new economic development group when it already has one.
Graham, who represents District 1, added that if the county wanted to generate economic growth, it needed to pave roads and fight crime.
They said more retail is needed, in part, to stem the county’s population loss.
Gavin, who represents District 4, said a new nonprofit would have to be funded because HCEDA does not focus on retail.
“Their focus has been primarily in the manufacturing aspect of recruiting industries in and working in that regard,” he said. “They have not taken on the responsibility of addressing… retail.”
Lackey said HCEDA can’t focus on retail under the terms of its charter.
However, he said HCEDA board members are considering changing that charter to expand their focus.
“We’re going to meet this Wednesday and that’s one of the questions we have to ask ourselves,” he said.
Lackey said any decision to change the charter would have to be approved by the Mississippi Legislature, and that could not happen until next year.
District 26 Sen. John Horhn believes lawmakers would be amenable to expanding HCEDA’s focus but doesn’t believe it’s necessary under state statute.
HCEDA was founded in 1987 as the Hinds County Economic Development District. The group was expanded in 2010, to allow it to issue bonds and to offer developers incentives, such as tax-increment financing bonds, with the board of supervisors’ support, Horhn said.
“As far as I know, the existing structure of the Hinds County Economic Development Authority does not preclude the authority from pursuing retail development, or any type of development for that matter,” he said. “I think it’s all-inclusive.”
“If they don’t have that authority now, I don’t think it would be a big problem to seek that from the legislature.”
For his part, Lackey said HCEDA is already better suited to help the county pursue retail development, citing the fact it is already established and already has a headquarters.
“It could just expand maybe a couple of employees and we’d be ready to go with that,” he said.
An expansion also would be cheaper.
According to county documents, the new nonprofit economic development hub would cost $1 million to set up. Supervisors estimate it would cost another $3 million to run in its first year of operation, with a portion of those funds going toward providing assistance to small businesses and assistance to households. The organization also would be seeking external funding.
In the second year of operation, the county contribution would decrease to $2.5 million, “assuming some grant money will have been obtained for the first year,” documents show. From there, the organization would transition “into primary funding through external sources.”
Gavin said the county would follow similar models established in Atlanta, Baton Rouge, and other cities.
“Once you get economic development started, funds seem to generate themselves,” Calhoun said.
Hinds County budgeted a little more than $2 million for economic development for fiscal year 2021, the most recent year available. That amount included $45,088 in county general funds and $2,024,050 in special revenues.
Budgets for economic development for the previous years ranged from a little more than $2.7 million to just over $2.8 million, with the majority of those funds each year coming from “special revenues.”
It was unclear if those funds went to HCEDA.
Gavin could not be reached for a follow-up comment.
The county is expected to receive around $45 million in APRA dollars, which will be delivered in two “tranches.” The second tranch, a little more than half of the remaining funds, is expected to be received by the county in July.
Funds for retail development would come from the second tranche.
Horhn says that money should be spent on infrastructure. “If you’re talking about economic development, and you don’t have good infrastructure, you’re not going to have good economic development.”
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